If you didn’t get a chance to listen in on our HUD Homebuyer 101 webinar this past Friday . .

. . . here it is.

Fran did a great job of setting up this video webinar for HUD homebuyers.

It was ESPECIALLY cool pointing out that you can walk into instant equity with a lot of these HUD properties in Mohave County (and all over AZ)!

We scoured listings on our AZ HUD servicing site, www.MCBREO.com and were seeing ‘As-Is Values’ (per appraisal) as high as 40% OVER the list price.

That is huge for investors wanting to make a smokin deal…

IF YOU ARE AN ARIZONA LOAN PRO who is versed in FHA 203B and 203K financing, PLEASE drop me a line and let me know you are around. We can never have too many of these resources.

For further information or any questions about buying HUD homes in AZ, give me a shout.

I know a little . . .

Arizona Real Estate On The Beautiful Colorado River ~~~

www.RealEstateBHC.com

www.CommercialBHC.com

www.RealEstateBHC.biz

866-228-2643

Candice A. Donofrio, Owner/Designated Broker

Certified Commercial Sales Specialist

Buying a HUD Home In Mohave County AZ, Bullhead City, Fort Mohave, Mohave Valley

I have scoured for a layperson’s informational process for those interested in bidding, purchasing and enjoying a HUD home, and have found the resources lacking.

What I usually do as an Arizona Certified HUD Broker is provide my buyer client with a copy of the Broker Handbook, but for most of them it is TMI.

So hopefully, this will demystify and clarify the HUD homebuying process.

Pre-Bidding Phase:

First step: view the property listing online at www.HUDHomestore.com which will include a Property Condition Report. You will get an inspection period opportunity but being prepared is best. HUD has had the property appraised and inspected, and it is priced according to professional assessment of the property. Still, get and look over area comps.

Physically view the property. If you’re not a contractor, rehabber or investor with contractor resources, do NOT bid on a HUD home you have not seen. Even then, it’s best to walk the property!

Look into due diligence items such as flood plain determination, unpaid assessments or easements, insurability etc. HUD will clear up unpaid assessments, but there is often a delay involved. It’s best to have the paperwork ready for them when escrow is opened.

If you are getting financing, you will need to talk to your lender about whether the house can be financed in its present condition–you cannot do repairs in escrow, even if lender requires them. There are certain types of loans that wiill provide for repairs to a HUD home:

FHA 203b Repair Escrow -“IE” When a property has less than $5000 in repairs to bring it up to Minimum Property Standards, FHA will insure the loan provided the repairs are completed by the Buyer or the Buyer’s agent within 90 days from the date of Closing. Buyer can finance and add the amount to the mortgage. The Lender monitors and keeps the funds in an escrow account for disbursement on completion of repairs to the Lender’s satisfaction.

FHA 203K Rehab Loan – “IK” When the property has more than $5000 in Minimum Property Standards repairs to be done. The Lender must obtain an Inspection report from an approved 203(k) consultant and a new appraisal.

Review the Bid Statistics. Get an idea of the list to sale price ratios. HUD homes are already priced to move, and your bid will not be countered if it is too low. You can make another bid, unless someone else outbids you during that round. It’s best to make a realistic bid. This is not an emotional seller. This is Bureaucracy and its responses are quite arbitrary–both a minus AND a plus.

Bidding Phase:

Only a HUD Broker can place a bid for you. The online bidding process is short and fast.

Once you have decided to bid on a HUD home, you will need your

Social Security number
If purchasing in a company name, the Articles Of Incorporation showing you as an authorized signer and TIN number.

You will need to give your HUD Broker the

Names of all buyers
Manner of taking title (consult with your attorney, CPA or estate planner for the appropriate manner of holding title prior to bid),
Mailing address
Phone number
Amount of bid
Closing costs
Copy of your loan approval letter.
Investor or Owner Occupant? IF YOU ARE NOT OCCUPYING THE HOME AS YOUR PRIMARY RESIDENCE, YOU ARE NOT AN OWNER OCCUPANT. Second homes are not an exception.

You will also fill out the HUD Contract, though that will not be submitted until after the bid is accepted. It must be filled out in BLUE ink and live signatures only are accepted. There is a movement to get HUD to accept e-signatures, but that hasn’t happened as of this writing.

about 24 hours

If the bid is accepted, you will be notified via your broker, who will receive notification via e-mail from HUD. The property listing will also say “Offer Accepted.”.

At that time, you will need to get a Cashier’s Check for the earnest money, made payable to yourself OR to HUD.

If your purchase is less than 50,000, the earnest money amount is $500; otherwise, it is $1000.

Make a copy of the check and give that to your Broker. Hold on to the check until you are instructed where to mail it. Your bid has been accepted, but the Contract not yet signed. So it is still not yet a deal.

In Buying A HUD Home In Arizona Part 2 of 3, I’ll walk you through the HUD Contract and Escrow Process.

In Buying A HUD Home In Arizona Part 3 of 3, the Escrow, Inspections, Funding and Closing Process will be reviewed.

DISCLAIMER: HUD is the final authority on procedure. Check with them before submitting any documentation.

Bullhead City Arizona Real Estate ~ At The Rotary Park Boat Launch

HUD Homebuyer 101 Video And Informational Webinar

Buying A HUD Home In Mohave County In 3 Parts ~ Bidding, Contract, Escrow

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